New research has discovered that average base pay for workers in the City of London has jumped 12 per cent in the past year to £83,000.
Financial services recruitment firm Astbury Marsden found that managing directors enjoyed the biggest hikes, with their wages up 21 per cent year-on-year to £237,000.
The biggest average increases were for those who changed jobs or received promotions, although people who stayed with their current employers in the same roles also had their average base pay boosted by eight per cent.
Despite the difficult economic conditions at present, City workers said they expect average pay next year to improve by a further eight per cent.
Astbury Marsden spokesperson Mark Cameron pointed out that most of the increases took place in the first half of the year, when confidence among the banks remained high.
"Pay rises in the last six months were far rarer and now City employees are expecting the impact of the eurozone crisis to produce very weak bonuses," he added.
Mr Cameron also explained that banks are being forced to attract new talent by offering high base salaries because they can no longer offer guaranteed bonuses under Financial Services Authority rules.
Meanwhile, a separate study by the Engineering Employers Federation shows that pay increases in industry fell 0.1 per cent between August and October, with one in five employers having to push through pay freezes.
Get more from your money by taking control of your pension